Question

AARP users of Snapchat the Internet users of a dating website like Harmony shoppers at convenience students at a high school customers at a gas station

Answer 1

Externalities means the impact on other. Externality may be negative as well as positive.

Negative externality means negative impact on another individual. For example- pollution

Positive Externality means positive impact on another. For example- free education.

Network Externality is the impact in a both positive as well as negative manner, due to increase in the consumption of products as others are doing. It plays an important role in increasing the consumption for a company. It may be positive as the number of individual increases so does the benefit. But it only becomes significant as the number of subscription increases. Thus option A is absolutely correct.